Simon-Kucher’s latest Global Streaming Study reveals that people are not increasing their streaming hours any more. And consumers are not only stepping back from streaming ‘more’ but also battling subscription fatigue and increasing price sensitivity. Can streaming service providers prevent subscription churn and still gain customers in this market?
Streaming services have begun coming around to the revelation that they cannot spend endless piles of cash on content creation indefinitely. They have to innovate to grow their subscriber base. Some innovations – such as alternative pricing models - have been successfully launched, some are still in progress, and some companies are having to change their game plans, leadership, or sometimes even both, as the author explains.
In this article, the authors reveal and analyze the results of the SKP 2022 Streaming Study. Overall trends show that, even though most users are streaming more than pre-pandemic, subscription fatigue is starting to show. In fact, more than one-third of users are likely to cancel a subscription in the next year. Experts outline why streaming services need to rethink their monetization models. This article presents insights and strategies for all pricers utilizing subscription and/or usage-based pricing models.